Tanzania Remains Favorite Route for Uganda Oil Export Pipeline, Official says Kenya ‘Lost the Deal’

Undercover reports emerging from the talks between Kenya and Uganda on Crude oil routing options indicate that Uganda has finally settled with Tanzania’s port Tanga as the Oil exit point.

A senior Kenyan official told the The East African newspaper on Saturday that Uganda had stuck to the route between Hoima and Tanzania’s Tanga Port route instead of Hoima-kichar-Lamu direction through Kenya.

Officials from both Uganda and Kenya have been in a close door meeting reviewing the outcomes of a fact finding mission on the economic viability of all Oil Pipeline routes including;  the Tanga in Tanzania, backed by a Gulf Interstate Engineering study and French giant Total and the southern and northern Kenya routes, supported by the Toyota Tsusho feasibility study backed by Tullow Oil Plc.

The team was created following a meeting between Uganda President Yoweri Museveni and Kenya’s Leader Uhuru Kenyatta, respective oil ministry officials and industrial players held in Nairobi. The talks were held to resolve the deadlock on Uganda Oil Pipeline Project.

“We have lost the pipeline deal to Tanzania. The only deal is to go back to the drawing board to construct our own pipeline to Lamu Port,” an unnamed senior Kenyan official told the East African newspaper.

However, the final decision is expected to be announced at the 13th Northern Corridor Integration Projects Summit, which is slated for April 23, 2016 in Kampala.

Kenya Energy Cabinet Secretary Charles Keter in an interview with the Nation Newspaper  in Kenya said  that no decision had been reached.

“We are developing the (technical) report ahead of the summit next week,” Mr Keter said,

Keter remarks to the nation newspaper came upon his arrival from Kampala where he had been participating in the evaluation of a joint committee report that was set up by President Kenyatta and President Museveni.

The nation reported that the contents of the technical report which was the center of discussion remained closely guarded with Keter saying it will be for the Heads of State to make the report public.

“…It also means that nothing has come to the table that would require us to make concessions. In any case, making concessions is not in our mandate. That will be done at the Head of States level, if at all. But we are confident that by next week we will have a clear roadmap,” said  Keter.

 

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